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Registered User
Joined: 10/7/2004
Posts: 2,181
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I've been tracking this for a while. Quite some consolidation going on. These can be explosive. Please note I didn't say "will be"; I said "can be".
Good luck.
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Registered User
Joined: 2/17/2008
Posts: 132
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i often see people refer to a stock as 'consolidating'. what do you mean by this exactly? do you mean trending vaguely sideways for a while. people also talk about 'accumulation' within a stock. how do you know if the volume being traded within a stock relates to buying or selling exactly?
what do you mean by 'quite some consolidation going on' with AIG? how do you know this? is this based on volumes traded, or some other variable i don't know about yet?! (cos the volume traded in this stock was well below average today).
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Look at the Sept drop, the worst down day was on heavy volume but the value shoppers the following day almost doubled the previous day's volume and, although opening on a gap down, the price had a significant climb in that one day.
Then, there is the behavior of the volume, quite a few green spikes compared to the red. The waning volume over the last few weeks is, of course, partially due to the holidays but, this volume dry up is also characteristic of this potentially explosive pattern. It's frequently an effort by big money to lull everyone else to sleep. Sort of a feigned loss of interest.
I've told this forum about this pattern before; a close outside the lbb20, a show of strength as the support of the lbb20 drops out from under the price while the price climbs on reasonable to strong volume, then a dry up in volume and price float down to the lbb20. A little spike in OBV, volume and TSV and we may be off to the races.
I'm already in and increasing my position. Of course, one keeps a fairly tight stop until you see for sure but this one has that look.
And, yes, the sideways movement is what I call consolidation.
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Registered User
Joined: 2/17/2008
Posts: 132
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tobydad, any thoughts on SOLF? it too appears to be consolidating, and showing accumulation! its threatening to breach a 5.6ish resistance level. amd volume is rather good too.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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I like the looks of SOLF. I think I'll join you.
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Registered User
Joined: 2/17/2008
Posts: 132
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had conditional buy orders for solf at 5.46, aig at 1.62, and apwr at 4.51. none of them triggered (i set them half way through the day), much to my relief!there are plenty of stocks out there, many of them chosen on watchlists by yourself, bcraig and apsll, which mirror the dow. i.e. big down days in the last month or so, coming off a bottom, and now approaching and threatening to breach a resistance line. some have breached, like VICR today. others haven't yet, just like the dow approaching its 9000 resistance line. and therein lies the problem. if the dow convincingly breaches that resistance, then many stocks will fly. but surely these recent big up days on low volume are the set up for a fall next week. that's what i'm seeing anyway. those short etfs like SRS and FAZ are becoming tempting again...
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